What is the meaning of tax deduction for car purchases?

Tax deduction for car purchases refers to the tax generated when purchasing a vehicle.

The tax rate for car purchase tax is 10%, calculated based on the tax-inclusive price excluding增值税. The tax-inclusive price refers to the total cost of the vehicle, excluding the tax paid to the retailer.

The latest regulations for tax deduction for car purchases in 2021 are as follows:

From January 1, 2021 to December 31, 2022, vehicles powered by new energy technology, including pure electric vehicles, plug-in hybrid vehicles (including range extension), and hydrogen fuel cell vehicles, are exempt from vehicle purchase tax.